Originally Posted by Grubert
Let's say you have three product ranges: Standard, Superior and Deluxe. But you notice that the Superior isn't selling so well. What do you do? You rename your product ranges to Standard, Deluxe and Premier. People reluctant to buy the Superior will now feel that they are getting the Deluxe for the previous price of the Superior.
Branding strategy 101.
The above is only true if they are, as you put it, renaming their lines but keeping the features the same. I don't think they are really doing this. The VT60 stands alone as similar to the VT50, and will carry a similar price point. The ZT will be more expensive than the VT50. And the GT price point is basically gone. They are banking on the fact that GT customers will step up to the VT instead of down to the ST. For the most part, I think they're right. The ZT will likely be relatively limited distribution and carry a premium price point to match. Definitely cheaper than Elite, but clear step up from the VT.
What you are saying is true. It just doesn't apply here.